Who Gets The Write Off For Intrest Payments In A Subject To Deal?

Comments(11)

• 
  JohnLocke6th December, 2003

  JamesStreet,
  
  If you sell under a Contrract for Deed your buyer takes the deduction.
  
  If you L/O you take the deduction.
  
  Once you have the deed the seller is out of the picture except for any payments they made prior to you taking over the property.
  
  John $Cash$ Locke[ Edited by JohnLocke on Date 12/06/2003 ]

• 
  WheelerDealer6th December, 2003

  what about the 1098 that will get sent to note holder not the buyer?

• 
  Tedjr6th December, 2003

  I would have all mail come to me as the buyer. It will be in the name of the seller but I made the payments and will have cancelled checks or money orders to take to IRS if needed. You can even have name changed to the trust you set up or management or whatever makes you happy.
  
  Good LUCK and HAPPY HOLIDAYS
  
  Hope this helps some
  
  Ted Jr

• 
  JohnLocke6th December, 2003

  WheelerDealer.
  
  Glad to meet you.
  
  Another excellent reason to use a Loan Servicing Company (LSC).
  
  The LSC will send the your buyer a 1098, as they keep track of the intrerest on the loan. The information they send your buyer is acceptable by the IRS. So if you are charging a higher interest rate than is on the original loan to your buyer the buyer would receive the correct interest deduction. The LSC would also issue you a statement for your tax records.
  
  This way your buyer is only dealing with the LSC and not looking at a statement issued from the lender, which would be different since you are receiving the difference in the interest charges for a nice monthly passive income.
  
  When the LSC made the address change with the lender the sellers 1098 would be sent to the LSC, so this reduces problems with the seller trying to claim the interest that he is not entitled to.
  
  I do not recommend that any investor receive payments from the buyer. Use a third party such as an LSC, to show everyone including your buyer and seller that you are a professional and are looking out for everyones best interest.
  
  Most problems your read about are caused by an investor receiving payments and not paying the lender, what I propose keeps everything above board, and gives you credibility when convincing a seller or buyer to deal with you.
  
  John $Cash$ Locke [ Edited by JohnLocke on Date 12/06/2003 ]

• 
  WheelerDealer6th December, 2003

  Thanx John,
  
  What % due most LSC's charge to provide this service.and who is good?
  
  
  Wheeler D.

• 
  JohnLocke6th December, 2003

  WheelerDealer,
  
  The initial setup charge is between $75.00 - $150.00 per deal and $5.00 - $7.00 per check issued monthly. Very economical and well worth every dollar.
  
  John (LV) is the man with the names of LSC's as he keeps up on these around the US, what area are you in?
  
  John $Cash$ Locke

• 
  Pedrolo6th December, 2003

  Could I have some information about LSC in Mississippi, Florida and Indiana please.

• 
  JamesStreet6th December, 2003

  John,
  
  Just wanted to say thank you again for the manual. Still looking for a loan serving company in Minnesota close to me but that is for a different time.
  
  Which do you recomend contact for deed or lease option?
  
  Thanks James

• 
  WheelerDealer7th December, 2003

  John,
  
  If you are still following this post. i am in Texas. Austin. Those fees are very reasonable. Do they do escrow as well? lets say for a seller financed gig?
  
  Wheeler D.

• 
  MrMike8th December, 2003

  Bump.
  
  I am looking for a loan sevicing company in central FL.
  
  Thank you.
  
  Mike

• 
  samiz8th December, 2003

  Hey all,
  
  I would be interested in a good LSC in Houston/Texas
  
  Thanks